India’s GDP to grow at 6.4% in 2026, 6.6% in 2027: UN
India’s economy is expected to increase by 6.4 per cent this year and 6.6 per cent in 2027, according to a report released by United Nations.
The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) highlighted in its report that the economies of South and South-West Asia rose by 5.4 per cent in 2025 compared to 5.2 per cent in 2024, primarily due to robust growth in India.
According to the Economic and Social Survey of Asia and the Pacific-2026 study, India’s growth increased slightly to 7.4 per cent in 2025, supported by robust consumption, especially from the rural economy along with goods and services tax rate cuts, and export frontloading ahead of the US’ tariffs.
It said when 50 per cent tariffs were imposed in August 2025, shipments to the US fell by 25 per cent, causing economic activity in India to slow down in the second half of 2025. The services industry continued to be a major engine of growth.
India’s growth rate would be 6.4 per cent in 2026 and 6.6 per cent in the next year. The country’s inflation rate was expected to be 4.4 per cent this year and 4.3 per cent in 2027, the report outlined.
It said the trade tensions and geopolitical uncertainties caused a fall in FDI inflows to developing Asian and Pacific economies. Despite a 14 per cent increase in worldwide flows, FDI to the region fell by 2 per cent in 2025 after rising by 0.6 per cent in 2024.
Furthermore, India’s production-linked incentive programme serves as an example of how macroeconomic policy can promote green industrial development by providing incentives for domestic production of solar photovoltaic, batteries and green hydrogen. This reduces reliance on imports while generating new industrial beneficiaries who have a stake in maintaining the transition, as per report.
